Angel Rodriguez Pulls Up in His 24-Foot Panel Truck in Front

question 138

Multiple Choice

Angel Rodriguez pulls up in his 24-foot panel truck in front of Sezz Medi Brick Oven Pizza in Upper Manhattan. Even though it's the middle of the summer, he's delivering- firewood. He says even though fuel costs have doubled in the past year, it's still worth the premium he gets delivering ash and cherry to the captive and growing market in NYC. How does the doubling of fuel costs affect Angel's short run costs?

• A) Short run variable costs would increase.
• B) Short run fixed costs would decrease.
• C) Short run total costs would decrease.
• D) Short run average fixed costs would increase.

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Definitions:

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A practical form of love based on mutual benefit, understanding, and long-term interests, rather than purely emotional attachment.

Exchange Theory

A social theory that describes social relationships as transactions where individuals seek to maximize rewards and minimize costs in interactions with others.

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